2020 Spring Issue
Classify Carefully – IRS Continues to Scrutinize Independent Contractors
The classification of workers as independent contractors or employees has significant implications for businesses, but especially for construction companies given the widespread use of subcontractors. This article reviews the differences between independent contractors and employees, and how the IRS evaluates the distinction. A sidebar looks at how the qualified business income deduction relates to independent contractors.
Keeping an Eye on Taxes: The CARES Act and Construction
The federal government’s response to the novel coronavirus (COVID-19) has included many tax law changes. This article looks at three issues that construction company owners should keep an eye on in light of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act): payroll, net operating losses and the end of the “retail glitch.”
Opportunity Zones may Increase Demand but Present Risks
The federal government created qualified opportunity zones to attract investment in economically distressed areas by offering tax benefits to those who invest in them through qualified opportunity funds. As this article explains, the program may boost demand for construction services, but contractors should familiarize themselves with the requirements and potential risks.
Have You Looked Online for Skilled Labor?
The construction industry continues to grapple with a serious skilled labor shortage. To cope, contractors need to take advantage of all recruiting options available — including those on the Internet. This article explains why the labor shortage is dragging on and provides examples of some construction-specific online job sites.